Office of the Auditor General of Rwanda 9Å wwW,oaq.gov.rw COVID-19 EMERGENCY RESPONSE PROJECT (COVID-19 ERP) Audit Report and Audited Financial Statements For the year ended 30 June 2024 1. 11 COVID-19 EMERGENCY RESPONSE PROJECT (COVID-19 ERP) BACKGROUND, MANDATE AND GOVERNANCE TABLE OF CONTENTS 1. BACKGROUND, MANDATE AND GOVERNANCE ...................................................2 2. STATEMENT OF MANAGEMENT RESPONSIBLITIES............................................11 3. REPORT OF THE AUDITOR GENERAL......................................................ENR1.......... .12 4. FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024 ..................14 Office of 2he A udiltor General ojStcte Finances I COVID-19 EMERGENCY RESPONSE PROJECT (COVID-19 ERP) BACKGROUND, MANDATE AND GOVERNANCE 1. BACKGROUND, MANDATE AND GOVERNANCE 1.1. Background COVID-19 Emergency Response Project was constituted by Law No 003/2020 of 17/04/2020 and is a Project that falls under the Ministry of Health. The Project was formed under Credit Financing Agreement (Credit Number 6615-RW) signed between the Government of Rwanda and the International Development Association (IDA) on 09 April 2020 to finance the COVID-19 Emergency Response Project (COVID-19 ERP) and Pandemic Emergency Financing Facility Grant Agreement (PEFF Grant Number TFOB4324) signed on 06 December 2020. The Project was expected to close its activities by 30 June 2023. The first additional financing (Credit Number 6871-RW and Grant Number D805) was signed on 22 April 2021, the second additional financing on Global Financing Facility (GFF TF Grant Number TF0B6226) was signed on 02 September 2021 and the third additional financing (Credit Number 7092-RW and Grant Number E022-RW) was signed on 6 April 2022. Due to these additional financings, the project's closing date of activities is scheduled by 30 June 2025. To support the countries to amount an emergency response and mitigate the impact of the ongoing global pandemic, the World Bank group has created a dedicated fast-tracking facility. The fast-tracking facility will support the health systems emergency response and disease outbreak preparedness capacity building as well as mitigate the socio-economic cost of this outbreak, which is staggering. The proposed emergency response to the Republic of Rwanda is designed under the COVID-19 Strategic Preparedness and Response Program (SPRP), using the Multiphase Programmatic Approach (MPA) with an overall Program financing envelope of USD 1.4 billion from International Development Association (IDA) and USD 2.7 billion from International Bank for Reconstruction and Development (IBRD). 1.2. Project objectives The Project Development Objective (PDO) is to prevent, detect and respond to the threat posed by COVID-19 and strengthen national systems for public health preparedness in Rwanda. 1.3. Basic information of the project The description of the project is summarised in the table below: Project title - COVID-19 Emergency Response Project COVID-19 ERP) Project Start Date The project approval date is 09 April 2020 The date of signing the initial funding agreement is 09 April 2020 The project effectiveness deadline is the date after sixty (60) days counted from the agreement signature date. Implementing The implementing Budget Agency is Rwanda Biomedical Centre- agency Project Implementation Unit (RBC-SPIU) Project sponsor International Development Agny (IDA Project end date The initial Project completion date was 30 June 2023. The Project completion date was extended to 30 June 2025 due to additional financing. Credit Number 6615-RW, 6871-RW, 7092-RW Office of the Auditor General of State Finances 2 COVID-19 EMERGENCY RESPONSE PROJECT (COVID-19 ERP) BACKGROUND, MANDATE AND GOVERNANCE Grant Number TFOB4324, D805, GFF TFOB6226, E022-RW Line Ministry of the Ministry of Health (MoH) Program Strategic goals of the To prevent, detect and respond to the threat posed by COVID-19 and project strengthen national systems for public health preparedness in the Republic of Rwanda. Project Scope and The project will support the following components: Components Component 1: Case Detection, Confirmation and Contact Tracing Enhancing case detection, disease surveillance, sample collection and ensuring rapid laboratory diagnoses and carrying out contact tracing for COVID-19 and other disease outbreaks through financing and support for: (a) Enhancement of case detection through: * Screening travellers at ports of entry as well as in priority communities and targeted health facilities; * Diagnosing cases and referring them for treatment as needed; * Carrying out contact tracing to minimize risk of transmission; * Conducting risk assessments to identify hot spot areas of transmission and provide timely infonnation to policymakers including digital maps that can help in visualization of transmission; and * Carrying out multi-sectoral simulation exercises for COVID-19 and other disease outbreaks; (b) Strengthening the health system through; inter alia: * Providing medical supplies and equipment (e.g. thermo scanners; test kits; drugs; lab equipment and supplies, personal protective equipment); * Training and capacity building for frontline workers, and; * Operating costs for rapid response teams and recruitment of additional personnel. Component 2: Public Health Measures and Clinical Care Capacity Strengthening of public health policies and measures and establishment of critical clinical care capacity including promotion of digital solutions through financing and support for: (a) Public health policies regarding: * Social distancing measures (such as restrictions on border crossings, work-at-home policies, restricting public gatherings); Office of the Auditor General of State Finances 3 COVID-19 EMERGENCY RESPONSE PROJECT (COVID-19 ERP) BACKGROUND, MANDATE AND GOVERNANCE * Personal hygiene promotion, including handwashing and proper cooking; * Risk communication and community engagement using local channels to disseminate messages about the risks associated with COVID-19 and other disease outbreaks and applying innovative digital solutions such as mobile apps for sending out messages; * Production and dissemination of communication materials. (b) Provision of clinical care through, * Establishment of isolation capacity at a selected number of national and district hospitals including the rehabilitation of existing structures and leveraging of isolation units established for other infectious diseases; * Providing health personnel with appropriate protective equipment and hygiene materials; * Support for provision of medical and laboratory equipment and supplies, waste management equipment and supplies and video conferencing equipment for tele-medicine; * Minor civil works (mainly refurbishments); and * Operating costs, including recruitment of additional clinical personnel. (c) Purchase of project COVID-19 vaccines; (d) Vaccine's communication campaign; (e) Screening high-risk groups. Component 3: Monitoring and Evaluation (M&E) and Project Management This component supports M&E, and project management. To this end, it supports the following activities: Financing and support for: (a) Project management including * Strengthening of public structures for the coordination and management of the Project, including central and local (decentralized) arrangements for the coordination of Project activities (this will include support for the COVID-19 Incident Management System Coordination Structure); * The canying out of financial management and procurement requirements of the Project; * Project coordination activities, and; * Operating costs. Office of the Auditor General of State Finances 4 COVID-19 EMERGENCY RESPONSE PROJECT (COVID-19 ERP) BACKGROUND, MANDATE AND GOVERNANCE (b) Monitoring and evaluation of the Project including: * Assessment of implementation progress and review of operational plans; * Technical assistance, and * COVID- 19 Vaccination specific monitoring and evaluation. Component 4: Contingency Emergency Response Component (CERC) Providing immediate response to an Eligible Emergency, as needed. Component 5: Protecting essential health and nutrition services (New) * Outreach activities & catch-up campaigns; * Provision of nutrition and Reproductive, Maternal, New-born, and Child Health (RMNCH) oxygen commodities; * Organising transport system for patients and health providers; * Support to CHWs reform & performance-based financing scheme; * Integration of Non-Communicable diseases (NCD) screening into Reproductive, Maternal, New-born, and Child Health (RMNCH) program; * Capacity building of health providers and Community Health Workers (CHWs); strategic information and decision-making. Key project The following are key project's achievements during the year ended achievements 30 June 2024: Component 1: Case Detection, Confirmation and Contact Tracing Subcomponent 1: Disease Surveillance, RRTs and case investigation During this Fiscal Year, the National Conmmand Post coordinated efforts mainly to support in COVID 19 vaccination roll out process. In addition to that, RBC was able to provide logical support to teams of professionals who have been key in emergency preparedness and response especially on boarders and points of entries. These included doctors and nurses, laboratory technicians, rapid response teams, contact traces, infection prevention and control officer, cleaners, call centre operators among others. Subcomponent 1.2: Laboratory Capacity and Specimen Transport To maintain a quick response to the COVID- 19 outbreak, capacities of labs for diagnosis of COVID-19 cases and negative confirmation of other respiratory illnesses were strengthened through provision of Office of the Auditor General of State Finances 5 COVID-19 EMERGENCY RESPONSE PROJECT (COVID-19 ERP) BACKGROUND, MANDATE AND GOVERNANCE reagents and other medical supplies. Currently, the country holds 11 public laboratories offering PCR tests, and Rapid tests were decentralized at health center level. Component 2: Public Health Measures and Clinical Care Capacity Subcomponent 2.3: Infection Prevention and Control RBC continued the vaccination of children and other missed people until the end of September 2023, when the vaccination campaign was phased out. As of 30' September 2023, a total number of 11,152,196 people had received SI" dose of COVID-19 vaccine; 10,788,389 people had received the second dose of COVID-19 vaccine while 6,042,582 people had received a booster dose. Coverages by general population are as follows: First dose is 82.6%, second dose is 79.9% and third dose is 44.8%. Component 3: implementation Management and Monitoring and Evaluation Subcomponent 3.1: Country level coordination, planning, and monitoring The Ministry of Health operated a National Command Post which oversees the program coordination, management and monitoring; operational support and logistics concerning the Covid-19 outbreak response and other command posts in other districts. Subcomponents 3.2: Project Management During 2023/2024 Fiscal Year, RBC in collaboration with the Ministry of Health and other partners in health sector continued to deploy clinical and other support staff in the vaccination process and in other outbreak preparedness across the country and were provided with transportation and accornunodation facilities. Component 4: Contingency Emergency Response Component (CERC) In the aftermath of heavy rains that hit the Northern and Western provinces causing floods and landslides during the night of2nd to 3rd May 2023 that have negatively impacted on 135 losses of lives, Houses property damage and environmental degradation, the Government of Rwanda expressed the need to respond to the disasters and was granted a non-objection from the World Bank. This CERC component has been activated and is being implemented in collaboration with the Ministry in Charge of Emergency Management (MINEMA) to support the following activities: The Qffice of the Auditor General of State Finances 6 COVID-19 EMERGENCY RESPONSE PROJECT (COVID-19 ERP) BACKGROUND, MANDATE AND GOVERNANCE project aimed at the rehabilitation of 1,322 houses that were partially damaged, reconstruction of 463 houses totally destroyed by disasters of May 2023 as well as the establishment and equipping of 14 evacuation sites spread over 14 districts. This CERC component aims to support the long-term recovery of disaster-affected communities in five districts (Rubavu, Nyabihu, Rutsiro, Karongi, and Ngororero). The total amount to be transferred to MINEMA is equivalent to USD 9,000,000. The first instalment of funds transferred to MINEMA amounted to three million eight hundred seventy-five thousand US Dollars (USD 3.875.000) to support the project activities implementation. In March 2024, the total funds equivalent to Frw 918,656,432 were earmarked in the five (5) districts under CERC project implementation by MINEMA and the rehabilitation activities for 561 houses started forthwith and six (6) out of 14 evacuation sites which have land available have started. 1.4. Project cost and financing The project is estimated to cost USD 92.39 million. It is Co-financed by IDA credit number 6615-RW of USD 14.25 Million, IDA credit number 6871-RW of USD 30.2 Million, First Additional financing for COVID 19 Pandemic Emergency Facility Fund (PEFF Grant Number TF0B4324) of USD 0.942 million and Second additional financing for COVID- 19 Facility Grant (Grant Number D805) of USD 15 million and third additional financing of USD 32 Million as analysed in the table below: Table: Expected disbursement per project component and source of financing: Project Components and Original **PEF AD ***AF *8GFF ***AF Total sub-components (P173855) (P175252) (P176304 GRANT (P178282 _ TFOB6226 USD USD USD USD USD USD (mnillillion(mon) n) Qiillion) (million) (million) Component 1: Case 5.9 0.94 - - 6.84 Detection, confirmation and contact tracking Disease SurIVeillanc.e, RRTs 2.2 --- 2.20 and case investigation Laboratory capacity and 2.8 0.94 - - 3.74 specimen transport Points of Entry _ _ 0.9_ ____ - _ - -_ 0.90 Component 2: Public 8 - 29.2 - 31.717 68.917 health measures and clinical care capacityI Risk communication and 0.4 - 1 - - 1.4 community engagement . .. ..- Case 5.8 - 0.2 - - 6 management/specialized units/lab capacity Infection prevention1.8 - 18.7 - control Office of the Auditor General of State Finances 7 COVID-19 EMERGENCY RESPONSE PROJECT (COVID-19 ERP) BACKGROUND, MANDATE AND GOVERNANCE Project Components and Original **PEF AD ***AF *-8GFF ***AF Total sub-components (P173855) (P175252) (P176304 GRANT (P178282 S ~ USD F9B6226 USD USD USD USD USD USD milion (mllon mLli;on) m illon (mllo million) Vaccine procurement & [T.8- 23.004 26.804 Systems strengthening - 3 5.041 8.041 including maintaining essential health services I Other vaccine deployment - - 2.5 - 3672 6.172 costs Component 3: Project 0.35 0.8 0.283 1.433 Management and M&E Country level 0.2 - 0.15 - 0.35 coordination, planning and monitoring Pro ect Mana ement 0.15 0,65 - - 0.8 Immunization monitoring, - - - - .283 0.283 vaccine safety surveillance and post introduction evaluation Component 4: CERC -.-_- - ComponentS5: Protecting - - - 15.00 - 15.00 essential health and nutrition services (New) Outreach activities & - 0.6 0.6 catch-up campaigns Provision of nutrition and - 355- 3.55 RMNCH oxygen commodities Support to CHWs reform - 3- -.7 - 3.7 & performance-based financing scheme Integration of NCD - -3 - 3 screening into RMNCH ..gam Capacity building; - - 4.15 strategic information and decision ma Total costs 14.25 0.94 30 15 32.283 92.19 * *GFF- Global Financing Facility for Women, Children and Adolescents, * **PEF- Pandemic Emergency Financing Facility, * ***AF- Additional Financing, 1.5. Funding summary * COVID-19 Emergency Response Project (IDA Loan 66150-RW), duration is from 09 April 2020 to 31 December 2022 with an approved budget of 13,100,000 Euros (USD 14.25 million), * The Pandemic Emergency Financing Facility (Grant TF04324), duration is from 6 December 2020 to 31 March 2021 with an approved budget of 942,857 USD, * COVID-19 Emergency Response Project (IDA Loan 68710-RW), duration is from 21" June 2021 to 31 December 2022 with an approved budget of 10,500,000 SDR (USD 15 million), extended to 30 June 2025 Office of the Auditor General of State Finances 8 COVID-19 EMERGENCY RESPONSE PROJECT (COVID-19 ERP) BACKGROUND, MANDATE AND GOVERNANCE * COVID-19 Emergency Response Project (Grant D8050) duration is from 21 June 2021 to 31 December 2022 with an approved budget of 10,500,000 SDR (USD 15 million), extended to June 2025. * COVID-19 Emergency Response Project second additional financing on GFF TF (Grant TFOB6226) with an approved budget of 15,000,000 USD from 02 September 2021 to 30 June 2023, extended to 30 June 2025. * COVID-19 Emergency Response Project third additional financing (Loan 70920-RW & Grant E0220-RW) with an approved budget of 14,300,000 EURO & 11,500,000 USD on 06 April 2022. (JSD 32 million) to end on 30 June 2025. Source of funds Development Development Amount received Undrawn balance Partner Partner (drawn) as at 30 as at 30 June 2024 Commitment Commitment] June 2024 (i)GranJt 194,5J93,710__ _____ TFOB4324 USD 942,857 938,270.10 IDA D8050 SDR ___ 10,500,000 10,474,700.87 ___ 25,299.13 TFOB06226 [USD 15,000,000 10,641,681.78 ] 4,358,318.22 E0220-RW SDR 11,500,000 9,581,746.28 1,918,253.72 (ii) Loan _ I -- IDA 66150 EURO 13,100,000 12,753,917.33 346,082.67 IDA 68710 SDR 10,500,000 10,463,059.77 36,940.23 7092-RW EURO 14,300,000 10,142,748.77 4,157,251.23 1.6. Governance of COVID-19 EMERGENCY RESPONSE PROJECT (COVID-19 ERP) 1.6.1. Ministry of Health The Ministry of Health has the overall oversight, responsibility for providing policy and strategic advice for the Project. 1.6.2. Management team The management team members who held office during the year ended 30 June 2024 until the time of the report in December 2024 are as follows: Name Role Period Prof Dr. MUVUNYI Director General From 26 January 2022 to date MAMBO Claude Mrs. BIGIRIMANA Deputy Director General From 260 January 2022 to date Noella Mr. UWAYG Theo Chief Budget Manager From 14 April 2021 to 04 February Principe and Chief Finance Officer 2022, he joined RBC and started to (CFO) serve as the Deputy Director General of RBC. He is currently serving RBC as the Chief Finance Officer (CFO) since 05 February 2022 to date Dr. BIRARO Gilbert SPIU Coordinator Project Coordinator, from 01 April 2015 to date Office of the Auditor General of State Finances 9 COVID-19 EMERGENCY RESPONSE PROJECT (COVID-19 ERP) BACKGROUND, MANDATE AND GOVERNANCE Name Role Period Dr. SANGANO Operations Program Operations Program Manager, from I Justin Manager January 2018 to date Mr. Program Manager Program Manager From I November MBWIRABUMVA 2018 to date Isaac Mr. SPIU/RBC Corporate Corporate Service Program Manager, NSENGIYUMVA Services Program from 01 November 2022 to June 2024 Bruce Manager Mr. BITEGA Finance Finance Coordination Specialist, Epaphrodite { Management from 01 April 2015 to date Mr. KANEZA COVID-19 ERP Financial From 1 December 2017 to date Francois Xavier SEecialist Office of the Auditor General of State Finances 10 COVID-19 EMERGENCY RESPONSE PROJECT (COVID-19 ERP STATEMENT OF MANAGEMENT RESPONSIBILITIES FOR THE YEAR ENDED 30 JUNE 2024 2. STATEMENT OF MANAGEMENT RESPONSIBILITIES Article 78 of Organic Law NO 002/2022/OL of 12/12/2022 on Public Finance Management requires each public sector entity to prepare and submit its annual financial statements to the Minister with a copy thereof to the Auditor General of State Finances within forty-five (45) days following the end of the fiscal year. Article 20 of Organic Law N' 002/2022/OL of 12/12/2022 on Public Finance Management further stipulates that the Chief Budget Manager is responsible for maintaining accounts and records of the budget agency. preparing reports on budget execution, managing revenues and expenditures, preparing. maintaining and coordinating the use of financial plans, managing the financial resources for the budget agency effectively, efficiently and transparently. ensuring sound internal control systems in the budget agency and safeguarding the public property held by the budget agency. As Chief Budget Manager, I accept responsibility for the annual financial statements, which have been prepared using appropriate accounting standards applicable to public entities as determined by Article 99 of the Ministerial Order No 001/16/10/TC of 26/01/2016 relating to financial regulations. These financial statements have been extracted from the accounting records of COVID-19 Emergency Response Project (COVID-19 ERP) and the information provided is accurate and complete in all material respects. The financial statements also form part of the consolidated financial statements of the Government of Rwanda. In my opinion, the financial statements give a true and fair view of the state of the financial affairs of COVID-19 Emergency Response Project (COVID-19 ERP). I further confirm that COVID-19 Emergency Response Project (COVID-19 ERP) maintained proper accounting records were which can be relied upon in the preparation of financial statements. I also confirm that adequate systems of internal control were maintained and operated effectively during the year to safeguard the assets of the budget agency. Nothing has come to the attention of management to indicate that COVID-19 Emergency Response Project (COVID-19 ERP) will not continue operating as a going concern for the foreseeable future. Signature: ( Mr. Theo Principe UWAYO Chief Budget Manager Datementjo M e R n l SYdienwnt: of Munagenrent Respoiisibilities 1 COVID-19 EMERGENCY RESPONSE PROJECT (COVID-19 ERP) AUDIT REPORT ON FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024 3. REPORT OF THE AUDITOR GENERAL REPORT ON THE FINANCIAL STATEMENTS Mr. Theo Principe UWAYO Chief Budget Manager 3.1. Opinion As required by Article 166 of the Constitution of the Republic of Rwanda, and Articles 6 and 14 of Law No 79/2013 of 11/09/2013 determining the mission, organization and functioning of the Office of the Auditor General of State Finances (OAG), I have audited the financial statements COVID-19 Emergency Response Project (COVID-19 ERP) for the year ended 30 June 2024 These financial statements comprise the statement of financial position as at 30 June 2024, and the statement of financial performance, the statement of cash flows, the statement of changes in net assets and the statement of budget execution for the year then ended, and a summaty of significant accounting policies and other explanatory notes. These financial statements are set out on pages 14 to 35. In my opinion, COVID-19 ERP financial statements which comprise of its financial position as at 30 June 2024, its financial performance and its cash flows for the year then ended were prepared in compliance with the Ministerial Order N0 001/16/10/TC of 26/01/2016 relating to financial regulations and Organic Law N0 002/2022 OL of 12/12/2022 on Public Finance Management. 3.2. Basis for opinion I conducted the audit in accordance with the International Standards of Supreme Audit Institutions (ISSAls). My responsibilities under ISSAIs are described in section 3.4 of this report. I am independent of COVID-19 ERP and have fulfilled my ethical responsibilities in accordance with the ethical requirements that are relevant to my audit of financial statements ofpublic entities as determined by the Code ofethics for International Organization of Supreme Audit Institutions (INTOSAI). I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion. 3.3. Responsibilities of management for the Financial Statements According to Organic Law No 002/2022/OL of 12/12/2022 on Public Finance Management, management of COVID-19 ERP is responsible for keeping accounting records and books of account, and preparation of financial statements in accordance with the financial regulations prescribed by the Minister in Ministerial Order N0 001/16/10/TC of 26/01/2016 relating to financial regulations. This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation and presentation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, management is responsible for assessing the COVID-19 ERP's ability to continue as a going concern, disclosing, as applicable, matters related to going Qffice of the Auditor General of State Finances 12 COVID-19 EMERGENCY RESPONSE PROJECT (COVID-19 ERP) AUDIT REPORT ON FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024 concern and using the going concern basis of accounting unless Government either intends to discontinue operations of the COVID-19 ERP. Those charged with Governance of this project are the Project Steering Comnittee. They are responsible for overseeing COVID-19 ERP's financial reporting process. 3.4. Auditor General's responsibilities for the audit of the financial statements My objective when conducting an audit is to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes my opinion. Misstatements can arise from fraud or error and are considered material if individually or in aggregate, they could reasonably be expected to influence economic decisions of users taken on the basis of these financial statements. An audit conducted in accordance with ISSAls requires an auditor to exercise professional judgment and maintain professional skepticism throughout the audit and involves: * The identification and assessment of the risks of material misstatement of the financial statements, whether due to fraud or error; design and perform procedures responsive to those risks and to obtain sufficient and appropriate audit evidence to provide a basis for the auditor's opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. * Obtaining an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purposes of expressing an opinion on the effectiveness of internal control. * Evaluating the appropriateness of accounting policies used, the reasonableness of accounting estimates made by management. * Concluding on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained whether a material uncertainty exists related to events or conditions that may cast significant doubt on the COVID- 19 Emergency Response Project (COVID-19 ERP)'s ability to continue as a going concern as well as evaluating the presentation of the financial statements. * Evaluation of the overall presentation, structure and content of the financial statements, including disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieved fair presentation. KAMUHIRE Alexis AUDITOR GENERAL KIGALI .............-..:....... .. 2024 Office of the Auditor General of State Finances 13 COVID-19 EMERGENCY RESPONSE PROJECT (COVID-19 ERP) AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024 4. FINANCIAL STATEMENTS F OR THE YEAR ENDED 30 JUNE 2024 4.1. STATEMENT OF FINANCIAL PERFORMANCE FOR THE YEAR ENDED 30 JUNE 2024 Description Notes 12 months to 12 months to 30 June 2024 30 June 2023 Frw Frw Revenue - Grants 2 7,828517,123 868821,689 Transfer received from public debts 3 2,954,353,897 9,082,042,988 Total revenue ______ 10,782,511,0201 23,950,864,677 Expenses Goods and services 4 6,433,886,816~ 13,19 1,784,890 D 5 5,214,442 Transfersto_reportingentities 6 5,144,343,112 1,504,041,284 Transfers to subsidiagy units 7 - 722,877,000 Social assistanc8 - 1,656,791,897 Capital expenditure 9 2,191,242,596 3,140,270,331 Total expenses 15,029,643,272 20,215,765,402 Other «ans and losses Foreign exchange gains 10 __467,534,238 436,030,310 Foreign_exchangelosses 10 (8,395,962) (206,987) Net exchange gains 459,138,276 435,823,323 Deficit/Surpus for the period (2,533,037,670) _4,170,922,598 The notes set out on pages 19 to 35 form an integral part of the financial statements. Aui3 dited Financial Statements 4 COVID-19 EMERGENCV RESPONSE PROJECT (COVID-19 ERP) AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024 41. STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2024 Description Notes Balance as at Balance as at 30 June 2024 30 June 2023 EFrw Frw ASSETS Current assets Cash and cash equivalents 81,888,069 3.887.270,410 Total current assets 81,888,069 3,887,270,410 Non-current assets Property, Plant and Equipment (PPE) 12 21,505.558 Total non-current assets 21,505,558 Total assets (A) 103,393,627 3,887,270,410 EQUITY AND LIABILITIES Current liabilities Accounts payable 13 162,818,510 161.271.665 Tax liabilities 14 2.833,649 1.440.000 Total liabilities (B) 165,652,159 162,711,665 Equity/Net assets (C = A-B) (62,258,532) 3,724,558,745 Equity Accumulated opening balance 3.724.558,745 (452,703.987) Adjustments made during the period 15 (1253,779607) 6340,134 Deficit /Surplus of the period (2,533,037,670) 4.170,922,598 Total equity (62,258,532) 3,724,558,745 Total equity and liabilities 103,393,627 3,887,270,410 The notes set out on pages 19 to 35 form an integral part of the financial statements. The financial statements were approved by COVID- 19 ERP management and were signed on its behalf by: Prepared by: Francois Xavier KANEZA - SPIL Financial Specialist Sigature Date Verified by: EPAPHRODITE BITEGA Director of Finance Sign ure Date Checked by: BIRARO Gilbert SPIU Coordinator Sign ure Date Approved by: Theo UWAVO Principe 7A Chief Budget Manager Sign ete Audited Financial Statements 15 COVID-19 EMERGENCY RESPONSE PROJECT (COVID-19 ERP) AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024 4.3. STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2024 Deseription 12 months to 12 months to 30 June 2024_ 30 June 2023 Frw Frw Cash fows from operating activities Grants 7,828, 7,123 14,868,821,689 Transfer received from public debts 2,954,353,897 9,082,042,988 Expensesj Goods and services (6,43386,816 (13,191,784,890) Transfers to reporting entities 5,144,343,112) (1,504,041,284) Transfers to subsidiaryunits - (722,877,000) Social assistance 1,656,791,897) _4A sltegdor: Changes-inpayables _- 2,940,494 (296,055,929) Prioyear adjustments (,253,779,607) 6,340,134 Foreign u-en.cy exchange differences 459,13 8,276 435,823,323 Cash flows used/Net cash flows from operating (1,587,419,745) 7,021,477,134 activities (A_) Cash flows from investing activities Acguisition of cpital itens (2,217,962,596) 3,140,270,331) Net cash flows from investing~activities (B) (2,217,9627596) 3,140,270,331) Cash flows from financing activities- Net decrease/increase in cash and cash (3,805,382,341) 3,881,206,803 equivalents (A+B+C) Cash and cash equivalents at _beginning of period 3,887,270,410 6,063,60 Cash and cash equivalents at end of period 81,888,069 3,887,270,410 The notes set out on pages 19 to 35 form an integral part of the financial staternents. A udited Financial Staten ents 16 COVID-19 EMERGENCY RESPONSE PROJECT (COVID-19 ERP) AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024 4.4. STATEMENT OF CHANGES IN NET ASSETS FOR THE YEAR ENDED 30 JUNE 2024 Description Accumulated Movements Total surplus/ deficit during the 2022/2023 2021/2022 year 2022/2023 Frw Frw Frw Accumulated surplus/(deficit) (452,703,987) 4,170,922,598 3,718,218,611 from previous years _____ ____ _____ ~__ Accumulated adjustments - 6,340,134 6,340,134 Changes in net assets items (452_703,987) 4,177,262,732 3,724,558,745 Accumulated Movements Total surplus/ during the 2023/2024 (deficit) year 2023/2024 2022/2023 Opigbalances 26720,000 26,720,000 Payment of capital items - (26,720,000) (26,720,OO0 Accumulated surplus/(deficit) 3,718,218,611 f(2,533,037,670)I 185,180,941 Accumulated adjustments 6,340,134 486,000 6,826,134 Adjustments on current liabilities - (1,254,265,607) (1,254,265,607) Changes in net assets items 3,724,558,745 (3,786,817,277) (62,258,532) The notes set out on pages 19 to 35 form an integral part of the financial statements. Audited Financial Statements 17 COVID-19 EMERGENCY RESPONSE PROJECT (COVID-19 ERP) AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024 4.5. STATEMENT OF COMPARISON OF BUDGET AND ACTUAL AMOUNTS FOR THE YEAR ENDED 30 JUNE 2024 Budget Budget Actual Variance Performance lines/Description--- Frw Frw Frw A___ B A-B (B/A) *100 Recep_ts _ Grants - 7,828,157,123 7,828157,123) - Foreign exchange gain 15467 67,534,238) -____ Total receipts - 8,295691,361 8,295,69161 Expeuditure Goods and services 11,096,968,827 r 6,433,886,8161 4,6635082,011 58 Transfers to reporting 6,730,125,734 5,144,343,112 1,585,782,622 76.4 entities 1____ __ Transfers to subsidiary 50,000,000 50,000,000 units Social assistance 000,0 -_~~ II P ¯ Foreign_exchange loss - 8 395,962 f 8, 395,9_2) Total payments J 17,878,094,561 12,841,582,196 5,036,512,365 71.8 Acquisition of non- current Assets Acquisition of capital 1,548,924,751 2,217,962,596 (669,037,845) 143.2 iterns Financing Transfers received - 2,954,353,897 (2,954,353,897) - related to public debts~ Total net incurrence of - 2,954,353,897 (2,954,353,897) liabilities The notes set out on pages 19 to 35 forn an integral part of the financial statements. Explanation for major variances: • Goods and services: This variance is due to the acquisition of UPS worth Frw 1,150,800,000 delivered to Health Facilities initially planned under goods and services instead offixed assets. Adjustient was done to make proper recording. • Transférs to reporting entities: This variance is due to the fact that most of the planned transfers were supposed to be transfirred to MINEMA to support emn ergency preparedness and response activities and the first transfer of Frw 5,014,343,112 was not utilized as planned. • TransJérs to subsidiary units: The variance of Frw 50,000,000 resulted from finds that should have been transferred to healthfacilities for supporting CO VID19-related activities but later on the government announced that COVID19 is no lonlger a pandemie. • Acquisition of capital iteis: This variance is due to the acquisition of UPS delivered to Health Facilities worth Frw 1,150,800,000 initially planned under goods and services instead offixed assets. Adjustment was done to make proper recording Audited Financial Statements 18 COVID-19 EMERGENCY RESPONSE PROJECT (COVID-19 ERP) AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024 4.6. NOTES TO THE FINANCIAL STATEMENTS 4.6.1. Basis of preparation 1. Statement of compliance The financial statements have been prepared in accordance with the Organic Law No 002/2022 of 12/12/2022 on Public Finance Management and related legal framework. These financial statements have been authorized for issue by the Chief Budget Manager of Rwanda Covid-19 Emergency Response (COVID-19 ERP) Project on Thursday, 05 September 2024. The financial statements have been prepared on accrual basis and the accounting policies set out on section 8.3 have been applied consistently in all material aspects throughout the year unless otherwise indicated. However, where appropriate and meaningful, additional information disclosed to enhance the usefulness of the financial statements and to comply with the statutory requirements or any other generally acceptable accounting standards. The presentation and classification of items in the financial statements are consistent from one period to the next and takes into consideration progressive improvements as contained in the Goverunent of Rwanda roadmap to migrate to accrual IPSAS. In preparation of transition to full accrual IPSAS reporting, legacy assets and liabilities are recognized in the statement of financial position as at 30 June 2024 for all applicable items whose information on the amounts and basis of recognition was available. a) Reporting Entity The financial statements have been prepared by Rwanda Covid-19 Emergency Response Project pursuant to Article 78 of the Organic Law on Public Finance Management No 002/2022/OL of 12/12/2022 that that requires the public entity to prepare the monthly and annual financial statements. b) Reporting period The Government of Rwanda Fiscal Year runs from Ist July to 30th June. These financial statements cover the period 1st July 2023 to 30"' June 2024. The comparative figures reflect the 12 months ended 30th June 2023. c) Basis of measurement The financial statements have been prepared on the historical cost basis except otherwise stated for items measured on an alternative basis on each reporting date. d) Basis of consolidation The financial statements are aggregated on a line-by-line basis with the intra/inter-entity transactions and balances being eliminated at the sub-consolidation and national consolidation level. Audited Financial Statenents 19 COVID-19 EMERGENCY RESPONSE PROJECT (COVID-19 ERP) AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024 e) Presentation currency The functional currency of the Government of Rwanda is the Rwandan Franc. For reporting and presentation purposes, the financial statements are translated into Rwandan Francs (Frw). The rates used to translate foreign currency balances is the average rate applicable by National Bank of Rwanda during the year. f) Accrual accounting transitional notes With the implementation of accrual accounting, entities will be required to account for economic events specific to their entities on an accrual accounting basis. Accrual accounting recognizes transactions when the underlying economic event occurs, not just when cash is received or paid. In accrual accounting, transactions are classified as assets, liabilities, equity, revenues or expenses. The objective of accrual accounting is to ensure that events that affect an entity's financial statements are recorded in the periods in which they occur, rather than in the periods in which the entity uses its appropriation. Accrual accounting means recognizing revenue when earned (rather than when cash is received) and recognizing expenses when incurred (rather than just when paid). Over the long run, trends in expenses and revenues, since they reflect the underlying economic consequences of operating decisions for a time period are generally more meaningful than trends in payments and cash receipts or charges to an appropriation. The accrual basis provides users with information about matters such as the resources controlled by the entity, the cost of its operations and other information useful in assessing its financial position and changes in it over a particular time period, and in assessing whether a particular entity is operating economically and/or efficiently. g) Financial statements for year ended 30 June 2024 The financial statements are prepared based on historical costs unless otherwise stated. The cash flow statement is prepared using the direct method. The specific accounting basis for major items in the financial statements are provided under section 8.2 of accounting policies. Public entities shall maintain their books of account on an accrual basis of accounting. The Health centers, primary and secondary schools affiliated to the decentralized entities shall maintain their books of account on a modified cash basis of accounting and progressively move to the accrual accounting basis as that of the rest of the public entities. h) Comparatives Non-current assets, strategic inventories, public debt and other liabilities were part of important disclosures during the financial period ended 30th June 2023 and not recognized. No significant estimates were applied in the comparative period. The carrying amounts of the non-current assets were disclosed at acquisition cost before depreciation while the strategic inventories were disclosed at cost. Public debt and other liabilities were disclosed as per available infornation. 4.6.2. Significant Judgments and Sources of Estimation Uncertainty The preparation of financial statements requires the reporting entity to make judgements, estimates and assumptions that affect the reported amounts of income, expenses, assets and liabilities, and the disclosure of contingent liabilities and contingent assets at the end of the financial year. The estimates and underlying assumptions are reviewed on an ongoing basis. Audited Financial Statemnents 20 COVID-19 EMERGENCY RESPONSE PROJECT (COVID-19 ERP) AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024 However, uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of the asset or liability affected in future periods. The assumptions are based on information available at the time of the preparation of the financial statements. It should therefore be noted that actual results may differ from the assumptions stated and thus have a material impact on the financial statements. a) Judgements made in applying accounting policies Information about judgements made in applying accounting policies that have the most significant effects on the amounts recognized in the reporting entity financial statements is included in the respective notes where such is applicable. Judgement is applied to determine whether a property qualifies as investment property. An entity develops criteria so that it can exercise that judgement consistently. b) Key sources of estimation uncertainty The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are related to useful lives of plant and equipment. The costs of plant and equipment are depreciated on a straight-line basis over the assets' estimated economic useful lives. Changes in the expected level of usage and technological developments could impact the economic useful lives and the residual values of these assets and hence, future depreciation charges could be revised. 4.6.3. Accounting policies a) Change in accounting policies The Government of Rwanda has elected to prepare the financial statements in accordance with the accrual basis of accounting effective 1 July 2023 and, similarly, adopted some applicable IPSAS accrual standards and interpretations issued by International Public Sector Accounting Standards Board. All changes in accounting policies have been made in accordance with the transitional provisions in the respective standards and interpretations. b) Summary of significant accounting policies The following accounting policies have been applied consistently by the entity in dealing with the items that are considered material to the financial statements for the year ended 30 June 2024. I. Revenue a. Revenue from non-exchange transactions * Tax revenue Tax revenues are recognized in the books when collected. Rwanda Revenue Authority (RRA) is the principal revenue collector of Government revenue mainly in form of taxes. Local governments have also been allowed to collect certain forms of taxes within their area of jurisdiction, with the RRA also entrusted to collect some of the tax revenue on their behalf. Audited Financial Statemen ts 21 COVID-19 EMERGENCY RESPONSE PROJECT (COVID-19 ERP) AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024 Tax revenue is further sub-categorized as taxes on income, profits or capital gains, property income, goods and services and international trade and transactions. * Social contributions These are contributions received by social security agencies for pensions, medical and community-based health insurance during the period. * Fines, penalties and licenses These are non-tax revenue collected by RRA and other Government Agencies. They are recognized when fees, fines, penalties or license revenue is collected. * Grants received Grants are transfers received by government units, from other resident or non-resident government units or international organizations that do not meet the definition of a tax, subsidy, or social contribution. These include current and capital transfers received from foreign Governments and international organizations. Grants are recognized in the books of accounts when cash is received and in case of grant in kind, such grants are recorded upon receipt of the grant item and upon deternination of the value. * Transfers received from general government entities Transfers from General Government entities include Transfers from National Treasury; Inter- entity and intra-entity transfers from reporting entities, and Transfers received related to public debt. Transfer from Treasury are recognized in the books of accounts when received. Inter- entity transfers refer to transfers between cost or revenue centres belonging to different public entities while intra-entity refers to transfers between cost or revenue centres within the same budget agency. A transfer is a transaction in which one institutional unit provides a good, service, or asset to another unit without receiving from the latter any good, service, or asset in return as a direct counterpart. These transfers could be classified according to the sector of the counterparty and whether they are current or capital transfers. All these transfers are eliminated at consolidation. * Transfersfromn subsidiary entities other than grant. The transfers other than grant include subsidies, as well as gifts and transfers from individuals, private non-profit institutions, nongovernmental foundations, corporations, and the nature of the transfer is not such that it could be included in the other categories of transfers. b. Revenue from exchange transactions * Property income Property income is the revenue receivable in return for putting financial assets and natural resources at the disposal of another unit. Revenue in this category may take the form of interest, distributed income of corporations, investment income, and rent. Distributed income of corporations includes dividends, withdrawals of income from quasi corporations, and Audited Financial Statemn ents 22 COVID-19 EMERGENCY RESPONSE PROJECT (COVID-19 ERP) AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024 reinvested earnings on foreign direct investment. Investment income includes property income from investment income disbursements, and holders of investment fund shares. * Sale of goods and services Sales of goods and services consist of the sales by market establishments, administrative fees charged for services, incidental sales by nonmarket establishments, and imputed sales of goods and services. Sales of goods and services are recorded as revenue without deduction of the expenses incurred in generating that revenue. * Proceeds from sale of capital items This refers to the fees collected from the sale of tangible fixed assets, sale of inventories, sale of valuables, sale of non-produced assets, disposal of financial assets - Domestic and Foreign. As the Government of Rwanda will be bringing in all non-current assets in the statement of financial position, proceeds from sale of capital items or inventories will not be recognized as revenue. However, the profit or gain on sale of such non-current assets and inventories will be recognized as revenue from exchange transactions. In the comparatives, proceeds from sale of non -current assets were recognized as revenue. * Other operating revenues a. Other operating revenues arise from exchange transactions in the ordinary course of the entity's activities. b. Revenues comprise the fair value of the consideration received or receivable for the sale of goods and services in the ordinary course of an entity's activities. c. Revenue is shown net of tax, returns, rebates and discounts. d. Other revenue/income consists of fees, fines, debt forgiveness, commissions, rentals, gains on disposal of assets, etc. e. Any gain on disposal is recognized at the date the control of the asset is passed to the buyer and is determined after deducting from the proceeds the carrying value of the asset at that time. * Interest revenue Interest revenue on financial assets classified at amortized cost or fair value through net assets/equity is accrued using the effective interest method. The effective interest rate exactly discounts estimated future cash receipts through the expected life of the financial asset to that asset's net carrying amount. * Dividend revenue Dividend revenue fi-om investments is recognized when the Government Entity's rights as a shareholder to receive payment have been established. * Rental revenue Rental revenue is recognized in the statement of financial performance on a straight-line basis over the term of the lease. Lease incentives granted are recognized evenly over the tem of the lease as a reduction in total rental revenue. Audited Financial Statements 23 COVID-19 EMERGENCY RESPONSE PROJECT (COVID-19 ERP) AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024 * Donated or subsidized assets Where an asset is acquired for nil or nominal consideration, the fair value of the asset received is recognized as revenue in the statement of financial performance. If control of the donated assets is conditional on the satisfaction of performance obligations, the revenue is deferred and recognized when the conditions are satisfied. * Gains Gains may be reported in the statement of financial performance when assets are revalued or liabilities are devalued in certain circumstances as described in the accounting policies for those assets and liabilities. These gains are excluded from total revenue and are presented separately in the statement of financial performance. II. Expenses All expenses should be reported on an accrual basis, i.e. all expenses are to be recognized in the period they are incurred or when the related services are enjoyed, irrespective of when the payment is made. * Compensation of employees Compensation of employees is the total remuneration, in cash or in kind, payable to an individual in an employer-employee relationship in return for work performed by the latter during the reporting period. Expenditure relating to compensation of employees is accounted for on an accrual basis and recognized in the books of accounts when an expenditure is incurred regardless of the time associated cash and cash equivalent are paid out. Staff costs include salaries and wages, the costs of pensions and other employee benefits. Public sector pension scheme costs include current service costs and past service costs. * Use of Goods and services Goods and services consist of the value of goods and services used for the production of market and nonmarket goods and services. The value of goods or services is recorded when the goods or services are actually used rather than when they were acquired or paid for. * Capital expenditure This comprises expenditure incurred during the period where it is probable that such expenditure would lead to the acquisition, formation or construction of non-current assets and or capital formation and currently not at a stage of classification as a non-current asset or work in progress. This category of capital expenditure has been expensed during the year when it is incurred and specifically may include; a) Categories of expenditures that are of a nature of non-current assets but cannot be recognized as such because of the threshold; b) Expenditures contributing to capital formation but not linked to an asset i.e. costs that may indirectly be attributable to assets yet to be acquired or formed; c) Expenditures initiated by respective public entities with end result going to households with capital nature; Audited Financial Statements 24 COVID-19 EMERGENCY RESPONSE PROJECT (COVID-19 ERP) AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024 d) Environmental, climate related initiatives not controlled by government despite being initiated by government for the wellbeing of the community; and e) Expenditures classified as development budget and hence capital in nature but fail to meet the test of an asset; Examples of capital expenditure items to be expensed may include cost of feasibility studies, research costs, costs incurred to plant trees, entities buying schools & health facilities , materials to be distributed in subsidiary entities, amount paid during expropriation awaiting for land transfer process, amount paid for classified items, amount on Forest development and capital expenditure in sectors; health facilities; and development projects whose legacy assets are reported by line institutions. * Grants awarded Expenditure relating to grants includes grants to international organization and foreign governments, grants to subsidiaries etc. Grants can be in cash, goods in kind or services in kind. Recognition of grants depends on whether they have conditions or are without conditions. Grants without conditions are expensed and liability recognized when there is binding arrangement for transfer of resources (cash or goods in-kind). Grants with conditions are expensed when the conditions as stipulated in the binding agreement are met by the receiving entity. Before the conditions are fulfilled, the grants amount as per the binding arrangement are recognized as an asset. * Subsidies Subsidies are current unrequited transfers that government units make to enterprises on the basis of the level of their production activities or the quantities or values of the goods or services they produce, sell, export, or import. Subsidies are receivable by resident producers or importers, and in exceptional cases, non-resident producers of goods and services. Subsidies may be designed to influence levels of production, the prices at which outputs are sold, or the profits of the enterprises. Subsidies include payable tax credits receivable by enterprises for these purposes. By the nature of subsidies, only government units incur an expense in this form. * Transfers to public entities Transfers to public entities are made in the form of direct/indirect cash transfers and direct payments to public reporting entities. * Social benefits Social benefits are current transfers receivable by households intended to provide for the needs that arise from social risks-for example, sickness, unemployment, retirement, housing, education, or family circumstances. These benefits are payable in cash or in kind to protect the entire population or specific segments of it against certain social risks. Social assistance and benefits expense is measured at an amount equivalent to liability. Liability is measured at the best estimate of the costs that the entity will incur in fulfilling the present obligations. Liability is for the next payment only. Audited Financial Statements 25 COVID-19 EMERGENCY RESPONSE PROJECT (COVID-19 ERP) AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024 * Interest Interest expense on financial liabilities classified as amortized cost is accrued using the effective interest method- The effective interest rate exactly discounts estimated future cash payments through the expected life of the financial liability to that liability's net carrying amount. The method applies this rate to the principal outstanding to determine interest expense each period. This means interest is allocated at a constant rate over the expected life of the financial instrument based on the estimated cash flows. III. Assets * Cash and cash equivalents Cash and cash equivalents comprise cash on hand, demand deposits, cash equivalents and other highly liquid investments with an original maturity of three (3) months. Demand deposits and cash equivalents comprise balances with banks and investments in short-term money market instruments which are readily convertible to known amounts of cash and are subject to insignificant risk of changes in value. Bank account balances include amounts held at the National Bank of Rwanda, foreign bank for the case of embassies and high commissions and at various commercial banks at the end of the reporting period. Cash & cash equivalent is reported under current assets in the statement of financial position. * Accounts receivable These receivables include the receivables from third parties and other receivables recoverable in period not exceeding 12 months. * Inventories Inventories are carried at the lower of cost or net realizable value. The carrying amount (values) for only strategic inventories will be recognized in the statement of financial position as at 30 June 2024. * Prepayments and other current assets These include advances and prepayments made during the year but the service or goods are not yet consumed or received by the entity at the end of reporting period. * Other financial assets These include acquisition of commercial papers, bonds of short term, treasury bills, etc. * Investments in associates and joint ventures An associate is an entity over which an entity has significant influence and that is neither a subsidiary nor an interest in a joint venture. Significant influence is the power to participate in the financial and operating policy decisions of the investee but is not control or joint control over those policies. A joint venture is a joint arrangement whereby the patties that have joint control of the arrangement have rights to the net assets of the joint arrangement. Joint control is the contractually agreed sharing of control of an arrangement, which exists only when A udited Financial Statements 26 COVID-19 EMERGENCY RESPONSE PROJECT (COVID-19 ERP) AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024 decisions about the relevant activities require unanimous consent of the parties sharing control. Investments in associates or joint ventures in the separate financial statements are accounted for at cost. * Investment in Controlled entities The controlled entities are all entities (including special purpose entities) over which a public sector entity or its entities has the power to govern the financial and operating policies generally accompanying a shareholding of more than one half of the voting rights. On the separate financial statements, the investments in controlled entities are accounted for at cost and reviewed for impairment at the end of each reporting period. * Property, Plant and Equipnent (PPE) All property, plant and equipment are stated at historical cost less accumulated depreciation and any impairment losses as at 30 June 2024. When no reliable cost information is available, the fair value of these items has been determined as a proxy for cost. Historical cost includes expenditure that is directly attributable to the acquisition of the assets: (i) Amounts incurred on the purchase of such assets plus other relevant cost incidental to bringing the asset to working condition. (ii) Construction Cost- including materials, labor and overheads. (iii) Improvements to existing PPE, which significantly enhance their useful life. * Capitalization No capitalization threshold shall be applied to non-current assets that would be recognized for the first time in the statement of financial position. * Depreciation The cost of Property, Plant and Equipment is depreciated from the date they are available for use on a straight-line basis over their expected useful lives using applicable rates which are provided in asset policy and procedures. * Disposal Realized gains and losses arising from disposal of PPE are generally recognized in the statement of financial performance when the significant risks and rewards of ownership of the asset have transferred to the acquirer. IV. Liabilities * Current liabilities These mainly relate to invoices for goods and services which were outstanding on the date of the closure of the fiscal year. These are recognized as liabilities for that specific fiscal year. All goods received notes are recognized as liabilities if not yet paid as at the end of the period. It also includes short term borrowings received by budget agencies from Local Commercial Banks as these are not regarded as public debt. Audited Financial Statements 27 COVID-19 EMERGENCY RESPONSE PROJECT (COVID-19 ERP) AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024 * Non-current liabilities These non-current liabilities include funds due to suppliers whose repayment shall be done in more than 12 months from the end of the financial year. V. Other relevant information * Important disclosures The following Legacy non-current assets and liabilities are disclosed under the important disclosures section of the financial statements for the year ended 30th June 2024 : Heritage Assets that comprise memorial sites, arts and museums, monuments and statues etc; Biological Assets held for Agricultural Activity and Agricultural produce and held as Property, Plant, and Equipment; Valuables; Natural Resources that are assets and whose values cannot be reliably valued; Non-current assets that are damaged and are awaiting auction; Fully depreciated legacy non-current assets; Non-current assets under construction with no reliable cost information; Inventories that are materials and supplies, work in progress, finished goods, agricultural produce and goods held for resale; Liabilities arising from Employee benefits (long term benefits owing at year end); Provisions, Contingent Assets and Contingent Liabilities; Service concession assets and liabilities; and Leased assets and liabilities. * Subsequent events There have been no events subsequent to the financial year-end with a significant impact on the financial statements for the year ended 30th June 2024. * Changes in accounting policies and estimates When presentation or classification of items in the financial statements is amended or accounting policies are changed voluntarily, comparative figures have been restated to ensure consistency with the current period unless it is impracticable to do so; in this regard, such adjustments have been treated as adjustments to opening balance. * Related parties The Government regards a related party as a person or an entity with the ability to exert control individually or jointly, or to exercise significant influence over it, or vice versa. Members of key management are regarded as related parties and comprise the state ministers, chief budget managers, executive secretaries and senior managers. * Budget information The original budget for financial year 2023/2024 was approved by the Parliament! District council for Local Government before end of June 2023. Subsequent revisions or additional appropriations were made to the approved budget in accordance with specific approvals from the appropriate authorities. The additional appropriations are added to the original budget by the Government upon receiving the respective approvals in order to conclude the final budget. A comparison of budget and actual amounts, prepared on a comparable basis to the approved budget, is then presented in the statement of comparison of budget and actual amounts. Audited Financial Statements 28 COVID-19 EMERGENCY RESPONSE PROJECT (COVID-19 ERP) AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024 * Foreign currency transactions Transactions denominated in foreign currencies are initially translated to the Rwandan Franc at the foreign exchange rate at the date of transaction. The National Bank of Rwanda provides exchange rates for major foreign currencies on a daily basis. These are presented for selling rate (rate the bank will sell foreign currency to its clients), buying rate (rate the bank will buy foreign currency from its clients) and average rate (average between the selling and buying rate). During the year, revenue items are translated using the buying rate presented at BNR website of the transaction day whereas the Expense items should be translated using the Selling rate presented at BNR website of the transaction day. The associated exchange losses are recorded as other expenditure while exchange gains should be recorded as other revenue. At the end of the year, book balances, Assets (such as bank and cash and accounts receivables) and liability (such as accounts payables), denominated in foreign currencies are converted into the Rwanda Franc at the average rate of exchange ruling on that closing date, as issued by the National Bank of Rwanda. The associated exchange losses/gains are recorded as expenditure/income in the books. 2. Grants During the 12 months to 30 June 2024, COVID-19 ERP received grants from Development Partners as detailed in the table below: ID Description 12 months to 12 months to Account 30 June 2024 30 June 2023 Frw I Frw 138113 Health Sector Budget Support (World 7,828,157,123 14,868,821,689 Bank Grant diursement) Total 7,828,157,123 J14,868,821,689 3. Transfer received from public debts During the year ended 30 June 2024, COVID-19 ERP received loan as detailed in the table below: ID Description 12 months to 12 months to Account 30 June 2024 30 June 2023 Frw Frw 139214 Transfer from public debt-External 2,954,353,897 9,082,042,988 project loan (World Bank/IDA Loan Disbursement) Total 2,954,353,897 9,082,042,988 Audited Financial Statements 29 COVID-19 EMERGENCY RESPONSE PROJECT (COVID-19 ERP) AUDITED FINANCIAL STATEMENTS FOR TIE YEAR ENDED 30 JUNE 2024 4. Goods and services During the year ended 30 June 2024, COVID-19 ERP consumed goods and services as detailed in the table below: ID Description 12 months to i 12 months to Account 30 June 2024 30 June 2023 Frw Frw 221101 ationery and printing consumables 450,685,250 397,584,892 221402 Fax and telephone - 126,659,990 221403 Internet costs 252,600,170 221599 Other licenses 3,709,417 111,772,659 221601 Bank charges 182,068 626,453 221703 Adverts and announcements 3,273,041 210,266,208 221704 Meetings and special assembly costs 133,434,330 854,607,051 221714 j Flags, banners and decoration costs 4,282,000 - 222108 rTechnical assistance remuneration 1 188,340,335 124,107,680 222109 Contractual personnel 1,907,961,057 5,807,872,959 222118 Performance Based Financin PBF) 1,568,678,909 232,102,845 223101 Transportation cost for domestic business 43,007,945 791,243,664 travel 223102 International airfares 5429,568 223104 Domestic per diems 297,194,040 2,084,184,035 223105 International per diems 2,368,453 223108 Fuel and lubricants for motor vehicles - 179,650,909 223120 Clearing of goods 16,933,378 31,139,633 224101 Maintenance and or repairs of 384,038,782 339,705,845 administrative building 224110 Maintenance and repairs of vehicles and 27,895,712 61,563,753 motorbikes 61,563,753 224112 Maintenance and/or repairs of hospital 66,215,863 349,021,028 and health centre equipment 224116 Maintenance and/or repairs of other - 108,458,571 eqipment --- 224202 Equipment spare pails 13,169,882 - 226103 Training related travel costs 925,800 - 226104 Traininy related per diems 57,539,530 226105 Traininghotel facilities 5,610,000 - 227101 Medical re anddrugs 899,297,292 - 227102 Medical sup Lies 335,264,745 842,125,310 227103 Vaccines - 237,627,400 227107 Incineration of expired drugs 18,449,419 48,863,835 Total 6,433,886,816 13,191,784,890 Audited Financial Statements 30 COVID-19 EMERGENCY RESPONSE PROJECT (COVID-19 ERP) AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024 5. Depreciation expenses During the year ended 30 June 2024, COVID-19 ERP incurred depreciation expenses as detailed in the table below: ID Description 12 months to 12 months to Account 30 June 2024 30 June 2023 'Frw Frw 239546 j_Depreciation - computers 3,564,464 1 239553 Depr n- ntwork security equipment 1,649,978 1 Total 5,214,442 - 6. Transfers to reporting entities During the 12 months to 30 June 2024, COVID-19 ERP transferred funds to implement COVID-19 vaccination activities as detailed in the table below: ID Description 12 months to 12 months to Account 30 June 2024 30 June 2023 fFrw Frw 267104 Transfer toreporting entities - 1,504,041,284 MINEMA 5,014,343,112 - National Child Development Agency 130,000,000 (NCDA) Total 5,144,343,112 1,504,041,284 7. Transfers to subsidiary units During the 12 months to 30 June 2024, COVID-19 ERP did not transfer funds to implement COVID-19 vaccination activities as detailed in the table below: ID Description 12 months to 12 months to Account 30 June 2024 30 June 2023 Frw Frw 267302 I Transfer to Government Aided Hospitals + - 722,877,000 ______Total - 722,877,000 8. Social assistance During the 12 months to 30 June 2024, COVID-19 ERP did not incur social assistance as detailed in the table below: ID Description 12 months to 12 months to Account 30 June 2024 30 June 2023 Frw Frw 272202 Assistance to vulnerable groups*- 1,656,791,897 Total -11,656,791,897 *; Children in malnutrition at different health centres. Audited Financial Statements 31 COVID-19 EMERGENCY RESPONSE PROJECT (COVID-19 ERP) AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024 9. Capital expenditure During the year ended 30 June 2024, COVID-19 ERP incurred capital expenditure as detailed in the table below: ID Description 12 months to 12 months to Account 30 June 2024 1 30 June 2023 Frw Frw 343299 Other ICT :Equpment 1,177,000,000 44,390,000 343304 Other specialized equipment I 1,014,242,596 j 2,938,473,463 343305 Laboratog and medical equipment - 157,406,868 Total 2,191,242,596 3,140,270,331 10. Foreign exchange gains and losses During the 12 months to 30 June 2024, COVID-19 ERP realisedlincurred gains/losses on currency exchange and translations as detailed in the table below: ID Description 12 months to 12 months to Account 30 June 2024 30 June 2023 Frw Frw 145111 Gains on currency exchange and translations 467,534,238 436,030,310 221605 Losses on currency exchange and (8,395,962) (206,987) translations Total 459,138,276 435,823,323 11. Cash and cash equivalents The bank amounts shown in the table below have been reconciled to the bank statements as at 30 June 2024 and as at 30 June 2023: ID Bank name and Amount in Exchange Balance as at Balance as at Account Number foreign rate 30 June 2024 30 June 2023 . ._.......I currency Frw Frw 311401 RBC WB COVID/ EURO 1.91 1,401.40 2,677 35,944 BNR 1000054646 311402 RBC COVID 19 ERP USD 60.851 1,310.88 79,783,598 1,650,028 GFF- BNR 1000059777 311403 RBC COVID 19 ERP USD 1,603 1,310.88 2,101,794 3,885,584,438 3AF/ BNR 1000079665 Total 81,888,069 3,887,270,410 Audited Financial Statements 32 COVID-19 EMERGENCY RESPONSE PROJECT (COVID-19 ERP) AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024 12. Property, Plant and Equipment (PPE) The following were Property, Plant and Equipment (PPE) as at 30 June 2024: ID Description Balance as at Balance as at Account 30 June 2024 30 June 2023 Frw Frw 373102 Computers 17,720,000 - 373109 Network securityequipment 9,000,000 _ - 373402 Accumulated depreciation -3Comuters[ 2564,464)_ - 373409 Accumulated Depreciation - Network (1,649,978)- . ....... . ........ty equipm ent Total 21,505,558 - 13. Accounts payable The following were accounts payable as at 30 June 2024: ID Description Balance as at Balance as at Account 30 June 2024 30 June 2023 Frw Frw 412101 Outstanding_paynent to suppliers 156,737,204 128,553,607 412105 Returned payments 5,262,906 32,718,058 412109 Mission pAyable_ 818,400- Total 162,818,510 161,271,665 14. Tax liabilities The following were tax liabilities payable to RRA as at 30 June 2024: ID Description Balance as at Balance as at Account 30 June 2024 30 June 2023 Frw Frw 412401 VAT payable (Input VAT) 2,421,899 1,440,000 412402 IWHT payable 411,750 - I Total 2,833,649 1,440,000 15. Prior year adjustments The following is the adjustments made on bank and cash during the year: Date Description Credit .-Frw 29/04/2024 Cash and cash equivalents 486,000 adjustments/Cash refund from Gahini Hospital 27/05/2024 Adjustments on payabjes __ ______ ,254,26_5, 079 Total (1,253,779,607) Audited Financial Stateients 33 ; , r е�ц � о гд Irn ' rn f гл о � сз о А° с°� �о I° � I� г�v �- г � `� р i0 Im й o�i, О� � � qa � с+> о0 е� I[� . �О д' � N 1д С s'' � ' м с° „' i�' I г�'� � N ' с7 � й cMV �V' � s�k -:. � г, � �о [� � м tгj I _.----- - . �.д._.�_.__ ' _ � �_� _. _;..N__.__....�.®.- о м �д С�--- �-- _._.. � �� й м � � b ' rn т� �di _ � у 1 _С � �G [�- И r- оо R 1' И ! � у � М i С7 м-а �О S1- гд Ст р сг w N о ел о, о, � V И Vi 'д' гЛ ГЛ гЛ �. i4 •--; ,-ч .-ч ;-ч � (� в ps � � I � RЭ -° � ' , ..,_..__ '-, --�.._...�_ ----- _г-.__. ___., _-- -- ,� �� _.N . �_ ы --� и й [� м �# � � � О оо � по � м �О '�4 � д �� N � iv v �4 а°', ,с�' "� � °� i ' с��, � 1е т я`ti, с`у,.. Gт? �'�.. 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